Microeconomics
Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 2, Problem 4QP
To determine

Calculation of slope.

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What does the slope of a curve between two points have to do with the opportunity cost of producing additional units of good?
Based on the photograph of the question 2 section. if the economy is currently producing 10 bags of snacks, what is the opportunity cost per unit of producing two more bags of tea?
Suppose the economy initially produces 9,000 pieces of clothing and 500 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 3,000 pieces of clothing (that is, moving production to point B) is __________ (options: 60 million, 80 million, 100 million, 120 million, 150 million) barrels of oil.   Suppose, instead, that the economy currently produces 420 million barrels of oil and 12,000 pieces of clothing, which is represented by point B. Now the opportunity cost of producing an additional 3,000 pieces of clothing (that is, moving to point C) is ________ (options: 60 million, 80 million, 100 million, 120 million, 150 million) barrels of oil.   Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 3,000 additional pieces of clothing at point B is ________ (opptions: greater than, equal to, less than) the opportunity cost of 3,000 additional pieces of clothing at point A. This reflects the ______…
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